Tipped Minimum Wage in North Dakota (2026)
North Dakota keeps the federal $7.25 minimum wage but takes a much smaller bite out of it: $4.86 an hour in guaranteed cash, with tips allowed to cover only the remaining $2.39. That 33 percent cap on the tip credit is one of the tightest in the country. Here is how it works, what your employer owes you in a slow week, and where the state's generosity quietly shows up — the overtime rate.
By the TippedPay editorial team · Updated $1
Key numbers at a glance
| Rule | Federal | North Dakota (2026) |
|---|---|---|
| Full minimum wage | $7.25 | $7.25 — same |
| Tipped cash wage | $2.13 | $4.86 |
| Maximum tip credit | $5.12 | $2.39 — 33% of the minimum |
| Top-up when tips fall short | Required every workweek | Required every workweek |
How North Dakota tipped pay works
North Dakota's minimum wage matches the federal $7.25 an hour, but its tipped cash wage does not match the federal $2.13. Employers must pay tipped staff at least $4.86 an hour in cash and may take a tip credit of only $2.39 — the tip credit equals 33 percent of the minimum wage, per the U.S. Department of Labor table, July 2026. In other words, tips can be counted toward only a third of your wage; the other two thirds must arrive as cash on the check, no matter how the shift goes.
The guarantee underneath is the weekly floor. Cash wage plus tips must average at least $7.25 for every hour of the workweek — measured week by week, never averaged across weeks, and within one week a strong Saturday cannot prop up a dead Tuesday. Run the numbers: 30 hours at $4.86 is $145.80 from the employer, and the weekly floor is 30 × $7.25 = $217.50. Keep $200 in tips and you finish at $345.80, comfortably clear. Keep only $40 and cash plus tips comes to $185.80 — short by $31.70, which must appear on your check as make-up pay. Our server paycheck calculator runs this top-up check on your own hours and tips in seconds.
A 33 percent credit puts North Dakota in rare company. Most tip-credit states let tips cover $5.12 or more of the wage; North Dakota caps the credit at $2.39, less than half the federal allowance, even while using the same $7.25 minimum. The state-by-state table shows how that compares with every other state running the same minimum.
North Dakota vs. the federal $2.13 system
| Rule | Federal | North Dakota (2026) |
|---|---|---|
| Full minimum wage | $7.25 | $7.25 — same |
| Tipped cash wage | $2.13 | $4.86 |
| Maximum tip credit | $5.12 | $2.39 — 33% of the minimum |
| Top-up when tips fall short | Required every workweek | Required every workweek |
| Overtime basis | Full minimum — OT cash rate ≈ $5.76 | Full minimum — OT cash rate ≈ $8.49 |
| Tip pools | Employees only, never managers | Employees only, never managers |
The minimums are identical and everything else is not. North Dakota takes the federal wage floor and re-splits it: more than twice the cash, less than half the credit. For a server, that trade is pure upside — the guaranteed portion of the wage roughly doubles, and the amount your employer can shift onto tips is cut by more than half.
What North Dakota servers should watch
The top-up, checked weekly. Even with a $4.86 cash wage, a dead winter week in a small town can still land under $7.25 an hour once tip-outs are subtracted. Track your hours and kept tips per workweek; if the average falls short, the difference is owed as make-up pay on the check — automatically, by law.
Overtime at the state rate, not the federal one. North Dakota overtime rides on the full minimum, and the OT cash rate is the cash wage plus half the minimum: $4.86 plus about $3.63, roughly $8.49 an hour, plus your tips. An employer plugging the federal $5.76 formula — or time-and-a-half on $4.86 — is shorting every overtime hour by $2.73 or more. The overtime calculator shows the exact figure for your week.
Tip pool membership. Tip pools are legal for employees only, never managers or supervisors. A manager taking a share is the classic violation, and it is the one that can void the employer's tip credit — jumping every affected server's cash wage from $4.86 to the full $7.25 minimum for the affected period.
Your real number. A $4.86 base with $22 an hour in tips is a $27-an-hour job in disguise. Compute your effective hourly — total wages plus kept tips, divided by hours — before comparing this job to any other offer. The cash wage sets your worst week; the effective rate sets your life.
FAQ
What is the tipped minimum wage in North Dakota in 2026?
$4.86 per hour in cash wages. North Dakota allows a tip credit of up to $2.39 against the $7.25 minimum, with tips covering the gap.
Why is North Dakota's tipped cash wage $4.86 an hour?
Because North Dakota's tip credit is set at 33 percent of the minimum wage. With the minimum at $7.25, employers may count at most $2.39 in tips and must pay the remaining $4.86 in cash.
What happens if my tips don't reach $7.25 an hour in North Dakota?
The employer must top up the difference for that workweek, bringing your total to at least $7.25 for every hour. The check happens weekly — a strong week cannot cover a slow one.
How is overtime calculated for tipped employees in North Dakota?
Overtime is based on the full minimum, not the $4.86 cash wage. The OT cash rate equals the cash wage plus half the minimum: $4.86 plus about $3.63, or about $8.49 per overtime hour, plus your tips.
Can managers take part in a tip pool in North Dakota?
No. Tip pools are for employees only — managers and supervisors may never keep any share of tipped employees' tips.
How do I calculate my real weekly pay in North Dakota?
Cash wage times hours, plus the tips you kept, checked against the $7.25-per-hour weekly floor. A paycheck calculator that runs the top-up rule automatically is the fastest way.